Rupee gains sharply vs dollar as Federal Reserve softens view on rate hike

Late Wednesday, the US Federal Open Market Committee raised interest rates by 25 basis points

The rupee strengthened sharply versus the US dollar on Thursday as the Federal Reserve’s latest monetary policy statement sparked hopes of the central bank nearing the end of its tightening cycle, dealers said.

The domestic currency settled at 82.26 per US dollar as against 82.67 per US dollar at previous close. Thursday’s move marks the sharpest single-day gain for the rupee versus the dollar since March 3 and the strongest closing level since March 13.

After depreciating by around 10 per cent against the dollar in 2022, the rupee has enjoyed a stronger spell in the current calendar year, appreciating